Welch, of G.E., Signs On at Clayton, Dubilier

By ANDREW ROSS SORKIN

Published: October 3, 2001

John F. Welch Jr., the former chairman of General Electric, decided on at least one second career path yesterday, joining the leveraged buyout firm Clayton, Dubilier & Rice as a special partner.

Mr. Welch, who retired from General Electric in September, will act as a Mr. Fixit coach for businesses that Clayton, Dubilier buys to rebuild. Such a job would mirror his role at G.E., where he often made acquisitions to restructure and streamline the companies.

For Clayton, Dubilier, which has $6.6 billion in managed capital and controls Lexmark International and Kinko's among others, the appointment of Mr. Welch is a coup that analysts expect will bolster the firm's credibility and ability to win deals.

Mr. Gogel said the firm, which has offices in New York and London, approached Mr. Welch last year after ''we sat around a room and decided it wasn't a crazy idea to ask.''

Mr. Welch has had some experience with the firm, mostly competing against it. Clayton, Dubilier operated the Allison Engine Company, which it had bought from General Motors for about $300 million and later sold to G.E.'s competitor Rolls-Royce for $525 million.

Mr. Welch also knew some Clayton, Dubilier partners who were former G.E. executives, including Charles P. Pieper, who served as chief executive of some G.E. businesses abroad, and James W. Rogers, who worked at both GE Aerospace and GE Capital.

Mr. Welch said, ''Clayton, Dubilier & Rice's demonstrated ability to deal with significant operating challenges and to focus on creating better businesses plays to my interests.'' He added, ''I know of no other firm that possesses the balanced combination of operating and financial talent that is required to address the relentless process of building stronger, better, more competitive global enterprises.''

It is unclear how much time Mr. Welch will devote to his new job, which will probably be one of many. ''He will be as active as much as we need him,'' Mr. Gogel said. ''He'll handle some of our existing portfolio of companies and also help coach all of our partners.''

However, Mr. Welch will not be keeping an office at Clayton, Dubilier. ''I told him he can have any office he wants, including this one,'' Mr. Gogel said in an interview in his own office. Instead, Mr. Welch will work from his office at G.E. in Rockefeller Center just a few blocks away.